(And yes Nanaimo it’s a great Move Up Market!)

Failing to evaluate your finances: Buying and selling homes are major decisions and  should be thought through thoroughly. Unfortunately, many consumers leap before they look which can be a recipe for disappointment. Dig deep and look at, not only how much you’re bringing in pay- check-wise but also, how much is going out. Loan to debt ratio is one of the largest factors consumers face when attempting a favorable mortgage loan. Things like making large purchases or applying for new credit before hand can have a negative impact on your buying power.  Not Putting first things first: One of the trickiest things in moving up is knowing which order to take each step in the process. Do you list first? When do you look for a new house? What about possession of the current home? An experienced agent will guide you through these twists and turns with ease and help ensure that you have everything moving in the right direction at the right time.

Failing to evaluate your finances: Buying and selling homes are major decisions and  should be thought through thoroughly. Unfortunately, many consumers leap before they look which can be a recipe for disappointment. Dig deep and look at, not only how much you’re bringing in pay- cheque-wise but also, how much is going out. Loan to debt ratio is one of the largest factors consumers face when attempting a favorable mortgage loan. Things like making large purchases or applying for new credit before hand can have a negative impact on your buying power. Ask me which mortgage broker I think can meet your needs best; they can help you sort through your finances and get you into the position to meet your purchasing needs.
 Overestimating your home’s value: Many homeowners make the mistaken impressions that they can price their home high and “come down” later. That strategy couldn’t be more detrimental to getting the most for their home in the shortest time. I can walk you through the wide spectrum of reasons why pricing right is your best chance at a fast sale.  I will do an in depth pricing analysis considering your circumstances and come up with the best starting price!

 Not knowing your liabilities: Most know what their mortgage payment is but not necessarily their mortgage payoff or what liens may be associated with their loan. It pays to have your ducks in a row when considering both selling and buying a home,
Not doing the math: People get overwhelmed thinking about how much less they might get for their home but forget to look at the flip side: how much less they’ll pay for their next. For example, if your home is worth $200,000 and you want to buy a $600,000 house, the difference in value is seemingly $400,000. However with home prices decreasing roughly 10% on average in today’s market, your current home’s value would be $180,000 and the home you want to move up to would be worth $540,000. So while your home value has decreased only $20,000, the home you want is now $60,000 less!

Like everything else, the real estate market has its ups and downs. For sellers in a tough market, getting the most from their home can be a challenge, but for buyers it often means getting more house for their money. For those consumers looking to both sell their house and move into the home of their dreams, it really does make for the perfect opportunity to move up.

Understanding exactly how the shifting economy affects your buying and selling power is not just my job, it’s my passion. While you might hear a lot of media expounding on bad-market syndrome or buyer’s market vs. seller’s market, know that in any market, I am here to bring you real information, in real time, with real answers on how you can achieve your real estate goals.

If you’ve thought about moving up to the home of your dreams while taking advantage of low prices and historically low interest rates, call me to walk you through all the information you need.

www.janicearmstrong.com

Mistake #10: Not getting pre-approved before house hunting

Why get your hopes up looking at $500,000 homes, when you can really only afford a $300,000 home? Before you start house hunting, narrow down your price range by getting pre-approved. Shop for a lender or mortgage broker you can trust. Ask me for some recommendations, there are some great ones here in town! The mortgage pro will review your credit, income, assets and debts, and recommend a mortgage with monthly payments that fit your budget. The result is a good faith estimate, a document that spells out the likely terms of your loan, including the interest rate and closing costs. Not only does this let you know how much house you can afford, it also lets sellers know that you’re serious about buying. It also makes you able to write offers with confidence!

Mistake #9: Thinking short-term

The house you purchase should be a place that feels like home to you and your family, but it’s important to remember that it’s also a huge investment. When shopping for a home, it pays to think about resale down the road. Search for homes in sought-after locations, and look for features that future buyers will want, such as central air conditioning and lots of storage space. But if you are one of the ever increasing young singles purchasing a home–but what you need NOW not for when you maybe, might have a family.

Mistake #8: Not researching the neighborhood

What good is having your dream home, if you don’t like the community where it’s located? Before shopping for a home, shop for a neighborhood. Make sure it’s a good fit for your lifestyle — figure out how long you want your work commute to be, how close you want to be to amenities like shopping and nightlife, and which school districts are the best. Even if you don’t have children, living near good schools raises your property value. Visit the neighborhood several times and at different times of the day. The biggest incentive for finding a quality community: a great neighborhood will increase your home’s value, while a bad one will drag it down. Reputation matters too-residents have long memories and areas do get reputations and while they may be revitalized the memory may be of years past for many. Trust that your Realtor can guide you away from these areas if you are unfamiliar with them yourself.

Mistake #7: Buying a foreclosure or fixer-upper without doing your research

Some home buyers are so set on finding a bargain, they overlook the fact that buying a home that needs repairs can be a stressful and expensive endeavor. Before buying a fixer-upper, get estimates on any necessary repairs and renovations and make sure they will pay for themselves in increased property value. The foreclosure market in Canada is very different than the US and while is also full of opportunities, but it’s important to be aware of the potential pitfalls and stresses before buying a foreclosed property. As is where is–no warranties is just that. Buyer beware. Often foreclosures, once they hit court–sell for a higher price than another home in the same area that did not go into foreclosure. Do your research.

Mistake #6: Falling for love at first sight!

Don’t shop with your heart!
Buying the first house you like is kind of like marrying the first person you go on a date with: not necessarily a good idea. If you don’t shop around and see what else is out there, you could miss out on a good deal or potentially regret your purchase. While you don’t need to visit every home in the neighborhood, you should compare at least three homes before you make a decision to ensure that you’re getting the right house at the right price. I also caution about falling in love before the contract is accepted. It can cause you to accept terms you may not have at the bargaining table–or cause heartache if the deal cannot be reached.

Mistake #5: Buying more house than you can afford.

Just because a lender is willing to loan you a fortune doesn’t mean you should take it. Buying more home than you can afford can quickly lead to financial trouble. Besides your mortgage payment, be prepared for the additional costs of home ownership, such as insurance, property taxes, utilities and maintenance. You may want to scale back the size of the home you’re looking for in order to bring the whole package in line with your budget. You will enjoy your new home less if you have no discretionary income to live and enjoy life and all your time and assets are going in to the new place.

Mistake #4:Not getting a home inspection

Even if a home looks flawless, it’s a mistake to assume that it’s actually problem-free. All homes have defects — even brand new ones — so getting a professional inspection before making the commitment to buy is crucial. Be sure to attend the inspection so the inspector can explain any issues. Your contract to purchase should have a clause giving you an out should your inspection show any substantial problems. That said–a deal does not have to collapse over issues–often the vendor will address them prior to closing or offer financial compensation for them. An inspection is crucial!

Mistake #3: Not reading the fine print

Or perhaps I should say not fully understanding it!
Real Estate contracts are wordy. No doubt about it. Countless lawyers and hours have gone in to drafting them. The standard MLS contracts are very precise. Then there are custom clauses that the Realtors use for individual sales. There can be a lot to digest. Typically in a BASIC sale contracts are 6 or 7 pages long!  ASK questions from your Realtor if you are unsure. If you are still unsure get it reviewed by your lawyer. As Real Estate professionals we write a lot of contracts–as a home buyer you deal with a lot less. Make us slow down and help you to understand if there are any points you are not clear on. Early in the buying process I would be more than happy to give you a sample contract to review at your leisure.

Mistake #2: Making an offer without “subjects”.

Having a back-out plan is a must for smart home buying. If the home has an irresolvable flaw, or your lender refuses to fund your loan, the house is un-insurable or extremely expensive to insure (since the Kelowna fires getting insurance is getting to be more challenging country wide!) having subjects in your contract gives you the right to cancel the transaction. If you find yourself in a multiple offer situation having a clean offer is key, but simple basic subjects do protect you.

Mistake #1: Waiting for the market to improve or not buying at all

No one can predict precisely where the market is going, so trying to time your home purchase with the bottom of the market is futile. There is no crystal ball. If you’re financially and emotionally ready to be a homeowner, it’s always a good time to buy. Just think: all the time you spend procrastinating on purchasing a home, you could be building equity, getting tax deductions and enjoying the many other benefits of home ownership. Interest rates are on the rise. CMHC has changing rules coming (March 17th)

Today is a good day to give me a call so we can sit down and assess where to start with your plan for home ownership! Give me a call.  250-756-1132

The dramatically rising cost of home heating is a bothersome concern for most Canadians. Heating your home efficiently this winter will be the key to keeping your energy costs under control. Here are some quick, easy and, most importantly, inexpensive ways to maximize warmth and minimize impact to your pocketbook:

- Adjust Your Personal Thermostat: Wear a sweater and dress warmly around the house. When you’re stationary, watching television or reading, you’re most susceptible to a chill, so toss a throw around you. Since hot air rises, resist the icy influence of cooler floors with thick socks or slippers.

- Adjust Your Home Thermostat: It goes without saying that the less energy you use, the lower your heating bills will be. Set your thermostat at 21°C when you’re home awake, 18°C when you’re sleeping and 15°C when you’re out of the house. Purchase a programmable thermostat to reduce you heating bill by as much as 20 per cent.

- Let the Sun Shine In: While up to 25 per cent of your home’s heat is lost through its windows, they are also a source of solar warmth. During daylight hours, keep your drapes open and let the sun help heat your home. Insulate your windows with plastic film to reduce heat loss by 50 per cent. Insulating curtains are expensive, but pay for themselves within 7 years.

- Seal the Leaks: Caulk, seal and weather strip around windows and doorframes, baseboards, ducting and electrical outlets to save up to 20 per cent on your heating bill. Remember to close your fireplace flue when you’re not enjoying a fire. Install a door sweep to resist against under-the-door drafts. Turn off the heat supply and close the door to unused rooms, such as a guest bedroom. Close interior doors leading to hallways or stairways to keep the heat where it’s needed most.

Snow Safety Tips to Survive the Winter Weather

The cold winter weather shouldn’t limit time enjoyed working on the home outdoors. Before venturing outside, ensure proper safety precautions are taken to avoid an accident or injury. Consider the following snow safety tips from The Home Depot Canada to help keep warm and safe all season long.

- Dress for outdoor success. Whether at work or play, bundle up in layered clothing to allow for better evaporation of perspiration. Outer garments should be tightly woven and water repellent. Wear boots or overshoes with non-skid soles to avoid slips and falls.

- Master the right shoveling technique. Before shoveling the walkway or driveway, ensure you are physically able. Arm yourself with a quality shovel that will last the entire winter. Lift with your leg muscles, not your back and remember, pace yourself and take frequent breaks.

- Blow it away. If shoveling is not your fancy, consider using a snow blower to push the white stuff away. Maintaining the blower will enhance performance and increase longevity. Check areas such as the engine oil levels, blower system chute positioning and tire pressure on a regular basis.

- Light the way. Since visibility is reduced in snowy weather and the winter brings darkness earlier, make sure you have well-lit walkways around the outside of the home.

- Roof clearing. If you need to clear the roof, try using long-handled snow rakes or poles. Should you require a ladder, make certain that the base is securely anchored. Ask a friend, family member or neighbour to hold the ladder while you climb.

- Winter warm-up. After spending time outdoors, snuggle up with a loved one and drink warm beverages like hot chocolate, coffee, tea or soup.

Moving with Kids

How to make the move easier on your kids

With all the hustle and bustle involved with moving, sometimes the feelings of children get overlooked. For a lot of kids and teenagers, moving means leaving everything that is important: their home, their school, their teams and clubs, and their friends. They are not normally involved in the decision to move, and oftentimes do not understand the necessity to move. It’s a frightening prospect.

Important things to keep in mind:

It is not unusual for children to show signs of stress, such as problems sleeping, anxiety, and lack of appetite. To make the process easier for your children and mitigate the impact of the move on them, consider the following tips:

• Tell your children as soon as you can. Children need time to deal with feelings of loss or separation, and the more time advance notice they have, the better.
• Explain in simple terms why the move is necessary. Make it short and positive, without overselling – children often know when a parent is masking negative feelings.
• As the children become used to the idea of moving, tell them about their new house and what they might expect to find there.
• Encourage open communication. Let children talk about their feelings. Reassure them by letting them know their feelings are normal.
• Attachments are strong, even at a young age. It may take some time for children to let go of their old house and old life.
• Involve your children in the move. Ask for their opinions and suggestions. Their point of view may provide insight into their true feelings.
• Involve them in the process. You may give them their own to-do list so they feel they are part of the process and contributing to it.
• Throw your children a going-away party. It’s a great way to gather their friends and create positive memories of your old home.

Most people plan their move to coincide with the end of the school year. Child psychologists, however, suggest moving at least a month before the end of the school year, so that they can make new friends before the long summer break. Children adapt much better when they have a circle of friends and some routine.

Make sure to give extra support to your children through the first weeks and months in your new home. Keep the same customs or rituals going, such as movie night or taco Tuesdays, to help make your kids feel at home in the new place.

http://www.royallepage.ca/en/realestateguide/moving/planning/moving-with-kids.aspx

#1 You will find the PERFECT home.

When you’re a 1ST time buyer, it’s easy to get caught up in the excitement of every part of buying your new home. You eat, sleep and breathe houses. But just because you have a vision of your dream house doesn’t mean you’re going to find it.  And if you did…it doesn’t mean you actually will love the features that you thought you wanted. (Ask me how I feel about my kitchen skylights, that was one of the selling features of my current house!)

Don’t walk into a home and expect everything on your wish list. Every house is going to have something wrong with it. They may not be major and they may be easily fixable. You have to learn to look past some of the small things at first look.

If you find a home that’s got 9 out of the 10 things you want, then really decide if not having the 10th thing is a deal breaker.

#2: The house has to “speak to you”

Often, when first-time buyers are walking through a home, they’ll say “this home really speaks to me” or “this home isn’t as nice or good for me as the other one, which really spoke to me.”

I caution  buyers against relying on this gut feeling. Decor can be manipulated to envoke all sorts of responses.  More and more Realtors and home sellers are using staging companies. Sometimes it’s merely the decor (which leaves with the seller) is more to your taste.

An interesting aside…I was once showing a house to a couple.  They quite liked it. A charming rancher in Diver’s Lake.  The baby cried briefly when we were just about finished viewing and they said they can’t write an offer on this one.  “The baby sensed something bad”.

#3: You should never buy a house with an old furnace

Never say never. While an old furnace may be a pain to maintain or replace, it shouldn’t be an automatic deal breaker if the house in question has everything else you want and need.  In fact in this day and age of heat pumps, the fact that there is ducting already in the house it can even be a plus.The same goes for a house with an old roof, old wiring or anything old, for that matter.

The concern of course is that you’re going to spend a significant amount to fix something, change it or buy a new one– which is a legitimate concern for property purchasers.

Certainly it’s prudent to identify areas where a home can eat up your money and put you in debt, like an old furnace, but when you’re buying a $400,000 home, it doesn’t make sense for a $2,000 furnace to be the only thing to focus on.  Offers can certainly reflect maintenance that needs doing immediately as well.

#4: Buy the biggest house you can afford

First-time buyers are often told to get a lot of house so they can grow into it. This is a major investment, so why not make the most of that investment, right?

Not necessarily. For instance, if you’re newly married and plan on having five kids eventually, it doesn’t make sense to go out and buy that four bedroom house now, if it’s just the two of you. Circumstances can change — you may need to relocate to a new city or you could lose your job. Also you pay more for heating, maintenance and time taking care of it all.

You should look at your needs, not what you’d like to have down the road, none of us have a crystal ball . Buy the space you need for your lifestyle that is affordable for you.

#5: Foreclosures are the best way to get an awesome deal…

In today’s market, first-time buyers are very focused on price and think they can get a better deal if they focus on foreclosures or short sales. But that’s a myth.

The easiest home to buy is seller-owned, where you and your Realtor write a strong offer and it is presented to the seller. The seller usually counters,  and so forth. The Realtors can relay information back andforth and the deal can be put together.

Foreclosures in Canada take some time to get your answer.  The FIRST person who writes an offer gets to pick a court date.  Anyone can then present an offer to the judge.  The banks have specific terms and expectations.  The judge decides which offer is accepted. Foreclosures are often in poor shape due to lack of maintenance and sometimes willful destruction.  Also there is no property disclosure statement so there could be some serious issues of which you are unaware.

I do not encourage my bargain hunting clients to look at foreclosures.  Instead we use good negotiating to get good deals.

Simple: While it’s true that this market will make it difficult to get as much for your current home as you would like, the price of that larger home you’ve had your eye on has also gone down. If you consider the price decreases in percentages, NOW is the BEST time to BUY!

For example, if your current home’s market value is $200,000, and the home you want to buy has a value of $600,000, the difference in value is $400,000. Right? 

Let’s say prices have decreased in your area roughly 10%*,  your current home would be worth $180,000, and the home you want to move up to would be worth $540,000. So while your home value has decreased only $20,000, the home you want is now $60,000 less!  Isn’t that a great motivator to move up into the dream house you have been considering?

Ready to crunch some numbers?  Give me a phone call at the office and we will set up an appointment to review the market value of your current home and prices on the home of your dreams.

*prices are down roughly 6% in Nanaimo over this time last year. cited from VIREB mls sales statistics.